The government is engaging the National Bank of Malawi (NBM) plc and other prospective investors to finance the procurement of modern vessels.

NBM plc has expressed a willingness to support the acquisition of two new vessels.

The development comes as discussions are also underway with other investors interested in investing in the water transport sector.

The government is pursuing the acquisition of new vessels to replace the ageing MV Ilala as part of efforts to modernize water transport on Lake Malawi and reduce the cost of doing business.

Minister of Transport and Public Works Jappie Mhango disclosed this in Parliament on Friday.

“MV Ilala has been operating on Lake Malawi since 1951 and has served the nation for 75 years. It has outlived its operational lifespan; therefore, replacing the vessel is our priority as we strive to modernize the water transport system,” said Mhango.

He further emphasized that increasing the use of rail and water transport for cargo movement will lower transportation costs, reduce pressure on the road network, and enhance the efficiency and sustainability of the country’s logistics system.